GDI Game Domain International plc (formerly Ltd) v Her Majesty's Revenue & Customs, V 20962
| Jurisdiction | UK Non-devolved |
| Judge | Miss J GORT |
| Judgment Date | 20 February 2009 |
| Respondent | Her Majesty's Revenue & Customs |
| Appellant | GDI Game Domain International plc (formerly Ltd) |
| Reference | V 20962 |
| Court | VAT & Duties Tribunal (UK) |
20962
VALUE ADDED TAX – Registration – Whether input tax incurred six months and two days prior to registration reclaimable – Rule 111(2)(d) of Value Added Tax Regulations 1995 applicable – Appeal dismissed
GDI GAME DOMAIN INTERNATIONAL PLC (FORMERLY LTD) Appellant
and –
Tribunal: MISS J C GORT (Chairman)
MRS L M SALISBURY
Sitting in public in London on 23 January 2009
Mr R Walkden, managing director, for the Appellant
Mrs Gloria Orimoloye, advocate, of the solicitors office, for the Respondents
© CROWN COPYRIGHT 2009
1. This is an appeal against a decision of the Respondents contained in a letter dated 10 April 2008 not to amend the Appellant’s effective date of registration (‘EDR’) from 1 June 2006 to November 2006. That decision was upheld in a letter dated 25 April 2008.
2. The grounds of appeal as set out in the Appellant’s notice of appeal are as follows:
“When the Accountants audited the accounts, they discovered agreement and invoices dating back to 29 November 2006, and I was alerted to the incorrect VAT registration date. It therefore became apparent that the company had begun trading much earlier than any of the new individual charged with running the company knew. As employee number one, I believed no business had taken place prior to my arrival, but the opposite was the case.”
3. The background to this appeal is that the Appellant (“the Company”), formerly a limited company, was set up on 19 January 2006 when it was registered at Companies House. Its main business activity as stated on its application for VAT registration is the “sale of digital download services”. The then owner of the Company had invented a piece of technology which was potentially worth large sums of money. He entered into negotiation with Virgin.com Ltd and on 29 November 2006 concluded a Subscription Agreement. By that agreement in the recital it is stated that:
“The consideration of £750 payable by Virgin in return for the issue to it of the Subscription Shares is to be set-off against the consideration payable by the Company to Virgin for services already provided, and services to be provided in the future, by Virgin to the Company.”
4. When the Company was set up it had an authorised share capital of £10m divided into 800 million A ordinary shares of nominal value of £0.01 each (the “A shares”) and 200 million B ordinary shares of nominal value of £0.01 each (the “B shares”)...
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